Is Service Tax paid on Royalty will be part of Royalty expenses or Other Tax expenses?
For ex: Royalty Payable to Party: 100
TDS Grossed up: 111.81
Service Tax payable (on Gross up amount): 13.82
Please let me know whether below entry is correct or not. Please correct me if i am wrong.
Entry:
Dr Royalty Expenses:125.63
Cr TDS: 11.08
Cr ST : 13.82
Cr Vendor: 100
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